Renault-Nissan alliance shakes up electric battery plans

Following the reports that the French-Japanese alliance is reconsidering its homemade battery EV strategy, the Renault-Nissan group said they are now mulling outside battery purchases.

The company, which has seen its plans for EV cars development shaken up by the general lack of electric cars demand, has been producing all of its battery packs in-house. The two automakers mostly relied on the packs produced by Nissan factories in Japan and the UK through a joint-cooperation with NEC Corp. Now, Renault-Nissan CEO Carlos Ghosn mulls external purchases of batteries from suppliers that can offer a cost advantage – as the maker wants to expand its electric line-up to places such as China.

“The goal is to make mass-market electric cars as efficient as possible,” Ghosn said, adding he wants to “put our own battery business in competition with the outside world. At the moment, we continue to produce our own batteries and we are open to outside sourcing, period.”

Ghosn confirmed last week’s rumors that LG Chem would become one of the new suppliers – the South Korean tech company being one of the biggest players in the world when it comes to auto battery packs. The Koreans already work with Renault, supplying packs for some of its own battery-operated models, such as the all-electric Zoe.